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Entrepreneurial entry thresholds

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  • McCann, Brian T.
  • Folta, Timothy B.
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    Abstract

    Much of prior research recognizes that entry into entrepreneurship involves a comparison of expected economic returns in a venture to some threshold level of acceptable performance. Despite this recognition, theory commonly focuses on drivers of economic returns at the exclusion of threshold drivers. Moreover, typical empirical investigations of entry provide little insight into whether determinants influence expected returns, the required threshold, or both. Drawing from the Panel Study of Entrepreneurial Dynamics, we apply an empirical approach new to the entrepreneurial entry literature to investigate the drivers of both expected performance and the unobserved threshold, providing greater insight into the specific causal role of entry determinants.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 84 (2012)
    Issue (Month): 3 ()
    Pages: 782-800

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    Handle: RePEc:eee:jeborg:v:84:y:2012:i:3:p:782-800

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    Web page: http://www.elsevier.com/locate/jebo

    Related research

    Keywords: Thresholds; Nascent entrepreneurs; Expectations; Entry;

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    References

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    Cited by:
    1. Vera Rocha & Anabela Carneiro & Celeste Amorim Varum, 2013. "Serial entrepreneurship, learning by doing and self-selection," CEF.UP Working Papers 1312, Universidade do Porto, Faculdade de Economia do Porto.

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